Welcome to the FRD Center business blog. The FRD Center website is www.frdcenter.ro Email: europa@frdcenter.ro Tel: +4021 4111459 .... Are you looking for market expansion to Eastern Europe? To acquire a local player, to export, relocate, invest in emerging markets in Europe such as Romania, Poland etc.? What do you know about these markets? Are you looking for qualified local importer-distributors? Are you looking to consolidate your presence in the market, to manufacture and/or increase sales?

Friday, 10 March 2017

Romanian IT and software sector is one of the most dynamic sectors in Europe, presenting numerous opportunities for foreign players interested to enter the region and set up operations in Europe.

According to ANIS - the Romanian Software and Services Association - the IT industry in Romania accelerated its growth to reach an added value to Romania’s GDP of EUR3.6bn in 2016, representing a 5% GDP growth. In 2015, the added value stood at over EUR 3bn, up by 21% year-on-year. The business in the sector increased by an average 15% in recent years and will continue to grow at a fast pace in the next years. The total turnover may surpass EUR4bn in 2017.

The sector’s growth has been mainly based on service exports, which reached over EUR2bn in 2015, a 31% increase compared to 2014, and should reach EUR3bn in 2017 and EUR4bn by 2019.

In the 2016 A.T. Kearney ranking, Romania has significantly improved its position as an IT outsourcing (ITO) hub moving up 5 positions. Currently, it ranks 13 and makes it to Top 15 best countries for global services delivery.

According to the Employers’ Association of the Software and Service Industry in Romania, large international IT companies currently operate approximately 50 centers, most of them BPO and IT-related.

The modernization of the key economic sectors in Romania will continue to offer opportunities for providers in the IT sector in the banking, oil and gas, energy and telecommunications sectors. Investments in modernizationare bound to create opportunities for the IT sector, especially in transports and utilities.

The cybersecurity market in Romania is still at an emerging stage, so there is significant potential to be captured, especially considering the intellectual potential that the Romanian IT sector has exhibited over the past few years and the exposure of the Romanian market to cybersecurity threats and opportunities.

The IT industry in Romania has a need for enhanced cybersecurity in sectors such as business analytics, mobile computing, cloud computing, and social business, as the government and companies alike are increasingly dependent on cyberspace.

As almost half of the fix broadband width services have at least 100 Mps, Romania ranks 1st in Europe for ultra-fast broadband use. As a paradox, the number of contracts for broadband services is one of the lowest in the European Union. Therefore, the access to IT & C services is still unequal.

Many of the players in the Romanian IT and software market are recording business growth and attracting investments for further developments.

For example, IT services provider Atos, announced it ended 2016 with a turnover of EUR54.2mil Euro in Romania, a 20% growth compared to 2015. According to country manager Atos Romania, the growth is a result of the innovations implemented in the cyber security services, automation and data analysis. Locally, Atos grew due to the opening of the new data security center at Timisoara, delivering services for an increased number of customers from Romania and abroad.

Fortech, a Western-Romanian software developer with a portfolio of over 140 clients, mostly from Germany and the US, and three operation centers in Romania, begun 2017 with a new leadership formula and a turnover of over EUR20mil.

Integrated business solutions provider Entersoft announced it increased businesses by 50% in 2016. The boost comes as result of the company's strategy to expand the ongoing contracts by 30%, new regional contracts by 30% and new Romanian projects by 40%. In 2016, Entersoft Romania was involved in projects developed on markets such as Spain, Portugal, Bulgaria, Poland, Czech Republic, Greece and Slovakia.

Local online application solution provide Zitec announced it attracted an investment worth EUR1.7mil Euro from eMag, to be used for further expansion of the company, common projects and the creation of a specialized department for European funds and grants. The company posted a solid growth in the past five years, reaching EUR4mil turnover in 2016, with EBITDA boost of 12%. Zitec's investments portfolio comprises companies such as Zipongo.com, cosQuare.com, HAC!BD publishing house.

Romanian software company Tremend forecasts a 40% turnover increase in 2017, from EUR 3.5mil in 2016, mainly due to the high demand for advanced software solutions. The increase is based on both the consolidation of existing accounts and the expansion of the client portfolio.

Romania’s IT market is one of the fastest growing markets in Central and Eastern Europe, where 45% of IT managers have increased their budgets for the coming years. The FRD Center is monitoring the developments and investments in the IT and software development sector in Romania and facilitates direct business relations between the foreign companies and relevant local players.

Since 2000, FRD Center offers tailor-made market research and intelligence, target / deal origination, B2B matchmaking, background checks on players, M&A consulting services, competitive analysis to foreign companies interested to enter Romania and the emerging markets in Europe as investors or joint-ventures, to acquire a local player, to relocate their operations in CE, SE and Eastern Europe.

For tailor-made sector data, B2B matchmaking with players in the Emerging Markets in Europe, for M&A assistance and target origination feel free to contact the FRD Center team at: email: europa@frdcenter.ro or tel: +4021 411 1459/60/61

What Clients say about us

Fred van der Meer, Ministry of Economic Affairs, The Netherlands The FRD Center organized for my group of 16 companies, custom-made business meetings, all resulting in potential future business.

Rob Costongs, Marketing Manager at C&H Maastricht (The Nederlands)Jackie and her team at FRD organised the matchmaking during the trade mission of the Dutch government in Romania. We from C&H Maastricht were very satisfied with the number and quality of the companies that FRD had researched for us and met us during the trade mission.

Ender Bozkurt, Board Member @ Novatemed Innoceuticals A.S. & Private Investment Advisor (Turkey) The FRD Center team are very knowledgeable and experienced. They run a very well structured execution plan for the service they provide. Even though we were behind the schedule when consulted them, they put things together in a short time without any flaw and they followed-up until completion of the project. I would recommend FRD Center for your market entry endeavours and I ensure you that you will get results thanks to their professional manner and the high degree of quality service they provide.Yoav Rottenberg, Business Manager - Europe at Naton Medical Group (China)"Jackie and FRD Center helped our company with our business development in Romania. They provided us with valuable information regarding the key players in the market and were very successful in locating potential customers for us and arranging the meetings. They did all this in a very short period of time and for a very reasonable price. I highly recommend.”

Top qualities: Great Results, Good Value, On Time

David Butler, Country Manager, Hungary & Romania, Enterprise Ireland (Ireland)“I wish I knew 10 Jackies! Extremely hardworking, professional, resourceful and full of initiative, she's also very thoughtful and lots of fun to work with - I can't recommend her highly enough.”

Marianne Vandenbosch, EMBA Program Manager, IMD Lausanne (Switzerland)"FRD Center worked with the IMD Executive MBA program, helping us to develop and deliver our discovery expedition to Bucharest. Their in depth knowledge of Bucharest and of doing business in Bucharest was very helpful to us. The FRD Center team are very reliable and deliver what is promised. Working with them over a number of years, they were able to offer better service each time. FRD Center teamare very reliable and willing to go the extra mile to make sure everything works out as planned."

Lau Brüniche-Olsen, Business Development Consultant, Confederation of Danish Industry (Denmark)“I can give Jackie Bojor and the FRD Center my best recommendations. I have worked with Jackie and several occasions and have been most satisfied with her work and professionalism.”

Mike Stout, International Franchise Development Director, CKE Restaurants (USA)“Jackie and her team are very knowledgable of the Romanian market. Jackie went beyond expectations in arranging meetings with potential candidates for our franchise concept, including meeting with all candidates and pre-screening. Should we enter the Romanian market, we certainly plan to use Jackie and her team for consumer research and other areas that can benefit a successful launch of our brand."

Jonathan Taylor, Business Development Director, Hanson plc (UK)“I would recommend using Jackie for market entry work in Romania. Her team can produce good, quick results and is very friendly and accommodating.”

Philip Martin, Product Development Manager, Faessler AG (Switzerland)“It was a great pleasure to work together with Jackie and her team. We as a company were looking for a distributor in the Romanian market. Since we're active in a very specific market the task was not easy at all. But the dedication to our project from Jackie and her team was great and they identified our needs clearly and brought us the right results.”

Paul Thompson, International Trade Adviser, Chamber of Commerce Herefordshire & Worcestershire (UK)"I have known Jackie for several years and meet with her whenever I am in Bucharest. I have used the services of FRD Center on several occasions and have also referred companies and can, without question, confirm that any work has always been undertaken in a very friendly and professional manner. I have no doubts about recommending FRD Center".Michel Gagnon, President of Davier Consultants (Canada)“More and more Canadian companies are interested in Eastern Europe and see the potential of the region. We have been able over the last few years to assist our Clients in identifying and securing a relationship with reliable Romanian companies, either as a partner, licensee or franchisee, and all these projects were carried out in cooperation with our exclusive partner for the area, FRD Center"